CVS Group (CVSG) H2 2025 earnings summary

Executive summary

• Revenue grew 5.4% to £673.2m, driven by acquisitions, improved UK operations, and continued Australian expansion, with like-for-like growth of 0.2% group-wide and 1% in the core practice division.

• Adjusted EBITDA rose 9.4% to £134.6m, with margin up to 20.0% despite wage inflation and higher national insurance costs.

• Divestment of Crematoria operations in May 2025 improved free cash flow and reduced leverage to 1.18x.

• Adjusted operating cash conversion reached 76.9%, exceeding the 70% target.

• Strong client and employee satisfaction, with NPS scores rising year-over-year.

Financial highlights

• Revenue: £673.2m (up 5.4% from £638.7m), mainly from acquisitions.

• Adjusted EBITDA: £134.6m (up 9.4%), margin at 20.0% (+0.7ppts).

• Free cash flow: £72.2m (up £13.1m year-over-year).

• Adjusted operating cash conversion: 76.9% (up 6.8ppts).

• Net bank borrowings: £131.4m (down from £168.0m).

Outlook and guidance

• Confident in achieving medium-term like-for-like growth of 4%-8%, supported by consumer confidence, CMA process clarity, and post-COVID pet demographics.

• FY 2026 results anticipated to align with market consensus for adjusted EBITDA (£138.9m–£143.2m), with recent acquisitions partially included.

• Cost inflation expected to be offset by efficiency savings, purchasing synergies, and favorable utility contracts.

• Ongoing opportunities for inorganic growth in Australia and the UK post-CMA, with two acquisitions completed in FY 2026 to date.

• Confident in medium- to long-term growth prospects.